The EzyEducation website uses cookies to help ensure we give you the best experience.
If you continue without changing your settings, we assume that you are happy to receive all cookies on the EzyEducation website.
Please refer to our Privacy and Cookies Statement to

find out more.

Continue

Variable costs

Costs that are linked to the level of output. An example might be the components needed to make a good, fuel for a delivery vehicle or the electricity used by a piece of machinery. The magnitude of these costs will depend on usage which will be closely linked to output. Costs will increase as output rises and will equally fall as output reduces.

Below is a graphic that highlights the main variable costs that a firm has to occur.

Forgot your password?